Father died, can I claim brother on taxes?

[constantsorrow]

My father died in NY in September of 2001. My father always claimed my brother as a dependant (he is now 23 years old and a student). When my dad died, I packed my brother up and moved him down to Texas to live with me. I provided for and am still providing for him (room and board, food, clothes, new computer, etc). Can I claim him on my 2001 taxes? It really helps me a lot (I can then claim head of household). I am only 25 years old and moving and providing for my brother has drained my small life savings. I am not 100 percent sure if I provided 1/2 of his 2001 support (as the law required to claim a dependant) as I have no way of knowing how much my dad provided for him. My brother and I are administrators of my father's estate so I am doing my father's return but I am being carefully watched by lawyer appointed by court to watch after my mother's interests (she is incapacitated in a mental institution). I want to make sure I do everything correctly and make sure no one thinks I have a conflict of interest. My brother is okay with me claiming him as a dependant.

 

[advisor10]

2-13-2002

DEAR CONSTANT:

Congratulations on being mature enough and responsible enough to take on the responsibility of helping your brother.

Unfortunately, you will not be able to claim him as a dependent for the 2001 tax year. Since he stayed with you for only 4 months, there is no way that the money you have spent on him during that time would add up to 1/2 of his 2001 support, as your father would have spent more during the 8 months that your brother lived with him. There are serious penalties for mistakenly claiming a dependent, and I don't think you would want to face those penalties. If you were audited, the IRS would ask you to prove that you were able to take this deduction by furnishing all receipts of monies you have paid out on him, and then they would compare that figure with the money your father would have spent on him.

However, there is still good news for you. When you or your brother (or your accountant) prepares the final return for your father, the brother could still be claimed as a dependent on THAT return, therefore receiving the benefit on his return of being able to perhaps claim deductions and (if the required income levels and other conditions were met) the earned income credit, as well.

Just a suggestion for you. During the year 2002, start saving as many receipts as you can of expenses you have paid for your brother, as you will need them as proof to verify your ability to claim him as a dependent on next year's return when you file it. The good news is that next year you WILL be able to claim him as a dependent.

You could also visit a local certified public accountant or tax accountant to ask them this question to see what kind of response you would get.

What is the estimated value of your father's estate? You may also want to consider hiring the services or a probate attorney to help with the estate tax return and also to guide you through the process if something comes up in handling the estate that you might not understand.

SINCERELY,

advisor